RBI Announced The Cut In Repo - March 5, 2009

On 4th March 2009, the Reserve Bank of India announced the cut in repo and reverse repo rates by 50 basis point each with immediate effect. Along with this, the repo, the rate at which the RBI lends short-term funds to banks, currently stands at 5 per cent from 5.5 per cent and the reverse repo, the rate at which the RBI borrows from banks, at 3.5 per cent from 4 per cent.

Now the banks are likely to cut both lending and deposit rates. This is the second rate cut by the RBI this calendar year. With ease in inflation rate to 3.36 per cent for the week ended February 14, 2009 and GDP growth falling to 5.3 per cent for the third quarter, rate cut by RBI was broadly expected. RBI has also cautioned banks to monitor their assets and take timely action to prevent defaults. The average PLR for most public sector banks is now 12.5 per cent.

Exports Fall For Fourth Month - March 4, 2009

The Indian exports for the fourth month in a row contracted, reflecting the dismal demand conditions in key markets like the US and Europe. The exports in the month of January fell by 15.9 per cent to $12.3 billion, which is the worst performance since June 1998. With the weakness expected to continue through the fiscal year, the government also cut its export target from $200 bn earlier to between $170 bn and $175 bn.

The consumer- driven segment like gem and jewellery is the worst hit among all the categories. While the exports continue to take a knock, the trade deficit narrowing in the month of January. The trade deficit narrowed to $6.1 bn from $7.6 bn in December, mainly on the back of fall in imports of oil by 47 per cent to $4.4 billion. The overall imports in January were also lower by 18 per cent at $18.4 bn, reflecting the lower oil import bill. The reports of a continued fall in exports comes just days after the government announced another package of Rs 325 crore for the exporters by providing them the cheaper as well as easier access to capital.

Indian Workers Have Greater Sense Of Pride - March 4, 2009

According to a workforce survey by human resources solutions company Kelly Services, most of the Indian workers have a preference of meaningful jobs over income and status even during the time when the job market is dwindling on account of the global financial crisis.

Out of almost 3,500 workers surveyed in the country, around 62 per cent said that they will give up income or status to do something more meaningful. Along with this, 60 per cent of female workers and 62 per cent of male workers are concerned about career prospects and are looking for another option. Kelly Services, which surveyed almost 100,000 people in 34 countries, said employees in India derive a greater sense of pride and self-confidence in their jobs than workers in any other country.

Kelly Services Asia-Pacific senior vice-president Dhirendra Shantilal said, "A significant number of people are actually prepared to give up some of their salary and their position if they can do something that is important and meaningful to them and their organization."

Postal Department Of India Has Signed An Agreement With CSO - March 3, 2009

On 2nd March 2009, postal department of India said that it has signed an agreement with the Central Statistical Organization (CSO) for collection of data on prices of consumer commodities in selected villages.

The Central Statistical Organization will use network of postal department for collection of the data, which will be used for compilation of Consumer Price Index (CPI) for rural areas, the DoP said in a statement.

In the process, DoP will first identify shops and outlets in selected villages using its infrastructure and manpower, from where data would be collected. Further, the department would collect the prices of items specified by the CSO every month, it added.

A group will be constituted including the members from the DoP and the Ministry of Statistics and Programme Implementation headed by the Additional Director General (National Accounts Division). The group would be responsible for monitoring the quality, timelines of the regular price data, procedures and other related issues.

India Had Banned The Import Of Chinese Toys - March 3, 2009

On 2nd March 2009, India lifted ban on import of Chinese toys in return of providing confirmation of international safety norms by China. Earlier on 23rd January, India had banned the import of Chinese toys for six months on grounds of public health and safety.

As per a public notice by the Commerce Ministry, the import of toys from China will be allowed if they conform to the standards prescribed in "ASTM F963" or "ISO 8124 (parts I - III) or IS 9873 (parts I - III)". These regulations mainly deal with protection and health exposures.

The toys market in India is approximated at Rs 2,500 crore while the volume-driven, price-competitive Chinese toys are estimated to control 70 percent of the global toys market

Further the Indian government said that the imports from China will have to be accompanied by a obligatory certificate from laboratories ascribed to the International Laboratory Accreditation Cooperation.

Imports And Exports Fell Sharply - March 3, 2009

Imports and exports fell sharply by 18 per cent 16 per cent respectively in dollar terms, as a impact of global slowown. Also, continuation to this the trade deficit also moderated to $6 billion in January 2009. Provisional trade figures compiled by the DGCI&S and released by the Department of Commerce here on Monday show exports in January at $12.38 billion were 15.9 per cent down than $14.71 billion in the corresponding month of 2008, while imports at $18.45 billion were 18.2 per cent lesser than $22.56 billion in the comparable month. As a result of the slowdown, the trade deficit for January is the lowest in recent months at $6 billion, against $9.9 billion in January 2008.

Because of the constantly constructive trends in exports during the first half of the current fiscal, the overall exports during the first 10 months at $144.26 billion show a relatively high growth of 13.2 per cent compared to $127.45 billion in the corresponding month of 2007-08. The deceleration in export juggernaut traction began in October 2008 and every month since then growth has been negative with the worst fall of 16.2 per cent in January 2009. Exports in rupee terms witnessed a modest 4.3 per cent increase at Rs 60,460 crore against Rs 57, 948 crore.

On the import front, cumulative value of imports in April-January 2008-09 at $243.35 billion ($194.28 billion) was 25.3 per cent higher. In rupee terms, the growth in import was 39.4 per cent up at Rs 10, 90,182 crore (Rs 7, 82,207 crore). Oil imports during January 2009 were lower by 47.5 per cent at $4.46 billion ($8.50 billion), reflecting the steep drop in global crude prices. Nevertheless, overall oil imports during the first 10 months of the current fiscal at $83.29 billion ($62.92 billion) were 32.4 per cent higher.

Non-oil imports at $13.99 billion in January 2009 ($14 billion) were 0.5 per cent lower. However, overall non-oil import growth during April-January 2008-09 at $160 billion ($131.35 billion) was 21.9 per cent higher. With overall import growth registering a 25.3 per cent surge in the first 10 months of the current fiscal and exports growing at 13.2 per cent, the trade deficit has zoomed to $99 billion, against $66.83 billion in the equivalent months of 2007-08.

ADB Is Planning To Invest Rs 13.71 Billion - March 2, 2009

The Asian Development Bank (ADB) is planning to invest Rs 13.71 billion for developing urban facilities and solid waste management in the capitals of five under-developed states, officials said on Sunday.

The ADB-assisted North Eastern Region Urban Development Programme will be executed over six years and will cover Agartala (Tripura), Shillong (Meghalaya), Aizawl in Mizoram, Kohima (Nagaland) and Gangtok (Sikkim). "The central government has approved the ADB-assisted programme," said Tripura Urban Development Minister Manik Dey.

"The ADB''s technical and programme appraisal teams had visited the five capitals a number of times to finalise the scheme, which is scheduled to be completed by 2015," the minister told.

Gold Prices Snapped - March 2, 2009

On Saturday gold prices snapped its three days losing streak and went up by Rs 175 to close at Rs 15,475 per ten gram in the bullion market in New Delhi. The surge was backed by aggressive buying by stockists and jewellers influenced by a firming global trend.

Buying activity in the precious metal gathered momentum after reports that the metal rebounded in international markets. Gold recorded a rise of 18.20 dollar to $963.70 an ounce. Standard gold and ornaments increased sharply by Rs 175 each to Rs 15,475 and Rs 15,325 per ten gram respectively and sovereign gained Rs 100 at Rs 12,400 per piece of eight gram. A similar firming trend was observed in silver as its prices in domestic market rose by Rs 100 at Rs 21,550 per kg and weekly-based delivery by Rs 155 to Rs 21,815 per kg. Silver coins also surged by Rs 300 to Rs 28,600 for buying and Rs 28,700 for selling of 100 pieces.

Growth In The Fourth Quarter To Be Much Better - March 2, 2009

Though the economy is struggling with the global economic slowdown but the Commerce and Industry Minister Kamal Nath is still confident that the growth of the country would pick up momentum in the last two months of this fiscal. Nath said "I believe the worst is over," by adding that the last two months of this fiscal would be much better in terms of growth.

Nath also said that the government was aware of the sluggish growth in the economy during the quarter ended December and that''s why the stimulus packages was announced. "We were seized... We did not know the figures but certainly we were seized that there is a sharp decline, that is why we did announce a stimulus package," said Nath adding that the measures have started yielding results.

The economy of India grew 5.3% for the quarter ended December from a year earlier, slowing from 7.6% in the previous quarter. The annual growth of India''s fiscal third quarter was lower than upwardly revised 8.9% annual expansion in the same quarter a year ago. The farm output in the December quarter fell an annual 2.2% as compared to a rise of 2.7% in September quarter. The manufacturing slipped an annual 0.2% in December quarter as against a growth of 5% in the September quarter. The construction grew 6.7% in December quarter as compared to 9.7% September quarter. The trade, hotels, transport and communication advanced 6.8% in December quarter vs 10.7% in September. The financing, insurance, real estate and business services gained 9.5% in Oct-Dec vs 9.2% in July-September.